-LRB- CNN -RRB- -- A second person who had been taken hostage at a rural Louisiana bank this week has died , a hospital official said Thursday .

Laden McDaniel , a woman who police said was among three Tensas State Bank employees taken hostage on Tuesday , died at Rapides Regional Medical Center , according to Sarah Clancy of the Alexandria , Louisiana , hospital .

Authorities said Fuaed Abdo Ahmed shot McDaniel and Jay Warbington as police stormed the bank in St. Joseph just before midnight Tuesday .

Police shot and killed Ahmed , Louisiana State Police Col. Michael Edmonson said . He said the gunman had threatened to kill the hostages .

Warbington died later , police said Wednesday . The third hostage had been freed before the shooting began .

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Ahmed had with him a book on torture and a bag with items he could use to torture people , state police Trooper Albert Paxton said Thursday .

He also had a book on hostage negotiations , Paxton said .

Police said Ahmed , 20 , was known to police , and Edmonson described him as a paranoid schizophrenic .

Ahmed told hostage negotiators that he heard voices and wanted to have a device removed from his head .

Born in California , Ahmed moved with his family to northeastern Louisiana , where his family owns a convenience store , Edmonson said .

The Mississippi River community of St. Joseph is about 35 miles south of Tallulah , Louisiana , and 35 miles north of Natchez , Mississippi . It is the seat of Tensas Parish , home to about 5,000 people .

Ahmed entered the bank branch with a handgun around 12:30 p.m. , and took the three bank employees hostage , according to officials .

After word got out about the hostage situation , local , state and federal law enforcement agents descended on the usually quiet community .

Law enforcement agents were able to talk to the hostages as well as the gunman .

Edmonson said he talked to , and prayed with , relatives of the hostages .

CNN 's Ed Payne , Dave Alsup , Alina Machado , Greg Botelho and Joe Sutton contributed to this report .

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Laden McDaniel is the second of the bank hostages to die

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Police identify the dead hostage-taker as Fuaed Abdo Ahmed

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Police : Ahmed shot both hostages as police stormed the building they were in

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One hostage was freed earlier in the evening